Which of the following issues will be most important to you when it comes time to cast your vote in November?
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Hot-Button Election Issues & Your PortfolioSeptember 8, 2008 By Jamie Dlugosch, Contributing Editor, Investors Insights |
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Issue #2:
Health Care: A Right or Privilege?
Quality, affordable and portable coverage for all according to Obama. He’s proposing to cover all Americans regardless of pre-existing conditions or economic condition with a plan similar to that available to members of Congress. Premiums would be affordable for all with subsidies for those who do not qualify for Medicaid. Employers will be incented to provide coverage with tax credits. He will require mandatory coverage for all children in the country.
Analysis: We as a country must decide if quality, affordable health care is a right or a privilege. If we decide that it is a right, then we must be willing to pay for it. Doing so will require higher taxes or cuts in spending elsewhere. Higher taxes are restrictive to economic growth.
Net Stock Impact: Negative
McCain believes the current system is adequate, but needs to be reformed. He will encourage the use of health savings accounts and promote competition in the industry to lower rates on insurance plans. His plan is heavy on reducing health care costs including the high price of drugs. He claims to cover those without prior group coverage or those denied coverage due to pre-existing conditions.
Analysis: McCain does not believe that health care is a right. He uses market forces to address the issues by promoting competition to reduce costs. To the extent he succeeds, the bill to the government will be significantly lower than Obama’s plan.
Net Stock Impact: Bullish
